CIS payment

[Funky munkey]

Hi Guys, was wondering if anyone has any information. just completed a fairly large contract pruning and removals company have now said there paying through Cis, i have always believed that if its not site Clearance for construction or pruning to clear for construction that arb work was excempt any ideas pointers would be greatly appreciated 

[woody paul]

Are you Cis registered at the moment. 

[rapalaman]

I do hedge and tree maintenance at a vets, subbed in by the company that does all their building maintenance and it’s cis payment ever since I started there about 3 /4 years ago. I just keep in mind the figure I Want for the job and add 20%. They pay my tax and at the end of the tax year, part of my hmrc bill has been paid in advance!

[steve@black]

Break down you invoice  Labour , waste and machinery ect and they will only deduct from your labour ,come tax time it makes a great difference for me . 

[Funky munkey]

Im mot cis registered at present, and they changed it to cis at end of the job, thanks guys 

[Steve Bullman]

Just get registered. Not sure why people make sure a big deal about this to be honest. Its like a little tax savings account, and if you're crap with your money like I am then it can really be a positive thing come tax time.

[Stephen Blair]

3 hours ago, Steve Bullman said:

Just get registered. Not sure why people make sure a big deal about this to be honest. Its like a little tax savings account, and if you're crap with your money like I am then it can really be a positive thing come tax time.

I’m at the opposite end, I’m good with my money and saving so I don’t want someone to have it before they need it when I can have it working for me.

[Gray git]

Had the same on a 5k job, no mention of it pre start so sent them another invoice saying my labor was now free but the hire of the equipment and removal of all waste was now the value of the original quote which was excepted and paid.
I see both sides of the argument and see the point for single person labor only business like a sparky or bricky as makes sure they pay the tax but a registad business providing company and vat numbers it's just a little annoying when that money could be with you nd invested back into the business sometimes for over a year.

[donnk]

as a main contractor i get this a lot. People who do regular work for builders and have a few quid in the bank are mostly on 0% CIS. Most though on 20% which means HMRC dont trust you to pay your tax in full and ontime.

 

It really doesnt matter to me as the bill is the same irrespective, the subbie gets to borrow the tax man some cash. I know a sparky who had a £15k fine for repeatedly putting everything down as materials thinking he was somehow getting one over on the taxman. He thought wrong.

[topchippyles]

I do both contract and private work and paying tax through the year is a always nice as you do not get a big bill to pay and even get a rebate most times.